Economic Policies - Unemployment (HSC QUESTION) (1 Viewer)

[moey16]

Explain how TWO economic policies could be used by the Australian Government to reduce the level of unemployment (2001 HSC 22.D) (4Marks)

two policies , Monetary and Fiscal Policy

Monetary -


Fiscal - increase expenditure on education , hence giving students acess to more opportunities. also funding and incentives to increase apprenticeships.


fiscal seems to be easier to explain as it is implemented by the government although monetary is to an extent the RBA dose control interest rates and inflation levels of the Australian economy so it makes the monetary part of this question difficult. any one have an idea to set me going thanks

 

[Jerruy]

RBA buys CGS from the Short Term Money Market, increasing the supply of cash, reducing the cash rate. Lower i/r means more investment spending by businesses means reduction in unemployment as such businesses need labour to carry out their work.

 

[Ozza]

Alternatively, you can go for the easier options of microeconomic reform:

The Workchoices Act of 2006 eradicated unfair dismissal from small businesses. With the knowledge that they wouldn't be stuck with undesirable employees in the long term should problems occur, more firms were willing to employ individuals (also because minimum wage levels would be lower ). Also, the Workchoices Act meant that wage increases could only follow productivity increases, hence why unemployment and inflation remained simultaneously low over previous years (obviously inflation's gone up a fair bit recently, with the next rate rise expected the day after our economics exam... which sucks, I wanna talk about it)

Changes to superannuation, trying to get the elderly working longer to minimise the impact of our ageing population.

Introducing welfare to work programmes forcing those on unemployment benefits to undertake a certain number of interview/applications etc.

Overall however, just use microeconomic reform as the example to raise competetiveness, efficiency and productivity in the economy, which will lead to job creation in the long term.

I hope this has been enlightening.

 

[dcalla]

ill be simple. explain how both work and link it to -->

...increased AD, as labour is derived demand unemployment will fall, as businesses will increase labour force to increase output production...

 

[dcalla]

Alternatively, you can go for the easier options of microeconomic reform:

The Workchoices Act of 2006 eradicated unfair dismissal from small businesses. With the knowledge that they wouldn't be stuck with undesirable employees in the long term should problems occur, more firms were willing to employ individuals (also because minimum wage levels would be lower ). Also, the Workchoices Act meant that wage increases could only follow productivity increases, hence why unemployment and inflation remained simultaneously low over previous years (obviously inflation's gone up a fair bit recently, with the next rate rise expected the day after our economics exam... which sucks, I wanna talk about it)

Changes to superannuation, trying to get the elderly working longer to minimise the impact of our ageing population.

Introducing welfare to work programmes forcing those on unemployment benefits to undertake a certain number of interview/applications etc.

Overall however, just use microeconomic reform as the example to raise competetiveness, efficiency and productivity in the economy, which will lead to job creation in the long term.

I hope this has been enlightening.

i like this bud. im lackin info on labour market policies. i feel with the recent changes its going to be an essay. good stuff. any more ?